First evaluation of new scheme for design-construct procurement in the Netherlands

The last three decades public procurement of works -in more than 95% percent of the cases- followed the route of design-bid-build. Public works were programmed and designed by public agencies and then contractors were asked to tender. Coinciding policy for deregulation and privatization in the Netherlands on one hand, and new perspectives on the functioning and restructuring of construction industry on the other, resulted in a program for "Innovative Procurement in construction industry". The main objective is to reform procurement practice and at the same time reshapes the construction sector, through extensive use of integrated contracts. By 2010, 30% of the total procurement volume should be non-traditional. The benefits projected were improved quality, lower cost, formation of economic clusters, and a more competitive position in the international construction market. In 2000 the Dutch House of Parliament approved this program, including a list of ninety selected projects and their preferred Innovative Procurement route. This paper evaluates the assumptions underlying the policy and the status ann. 2002, and presents a first evaluation of experiences and new insights.